Stafford Bankruptcy Lawyer
“Do I need to have to file bankruptcy on inherited financial debt?”
You will discover countless items 1 has to cope with when an individual dies. It appears a shame that this may be one of them. Whilst wanting to get throught the grief there are a lot of inquiries; economic, individual, emotinal. It could possibly really get a toll on you.
In my 20 many years as being a personal bankruptcy lawyer, I’ve been asked about bankruptcy and inherited financial debt possibly four or 5 times.
Someone’s mother or father passed on, leaving absolutely nothing but charge card and healthcare bills. What to complete? Does bankruptcy assist? A lot of people know that you don’t require to file bankruptcy-because you cannot inherit financial debt in America. I by no means believed I’d need to have to speak about this in my bankruptcy weblog.
(Unless you had been currently a co-signer, collectors can't come immediately after you for that charges of the mother or father. At least they should not.)
So I was shocked by a news release posted on the net March 31, 2011. Credit card debt collector Phillips & Cohen brags about their leadership in collecting “deceased account recovery.” Deceased account recovery?
Now if someone dies and instead gives off a probate estate, legitimate creditors must be paid. That’s one with the things that Phillips & Cohen says they do, on their website.
They also say they have “effective family … communication.” What’s that???
The Fair Financial debt Collection Practices Act says that a collector can't speak with anyone other than the consumer person in debt or significant other or lawyer or the credit score bureau. The only exception is to obtain “location information.”
So I’m not sure how these people-who are clearly collectors-communicate with family. They aren’t attempting to locate someone they are fully aware is deceased. Doesn’t some other communication instantly violate the FDCPA?
If a partner dies and leaves a probate estate, creditors need to be notified and legitimate debts should be paid.
But if they leave absolutely nothing, you usually do not inherit the credit card debt. Do not let anyone tell you which you do.
There’s no need to have to file bankruptcy.
This article is free for republishing
About the Author